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Canadian Prime Minister Justin Trudeau has taken his first concrete steps to fulfilling his campaign pledge to legalize marijuana in the country. On Tuesday, the government filed an Act to Amend the Controlled Drugs and Substances Act with the legislation officially introduced on Thursday at a press conference that was streamed live.

The goal is to implement legislation by July 2018. Deloitte estimates the market has a base retail value between $4.9 billion-$8.7 billion, which would rival the size of the Canadian spirits market, which is $5 billion. Vivien Azer of Cowen & Co. said in a recent report, “When you consider ancillaries such as growers, testing labs, security, etc., the economic impact could range from $12.7 to $22.6 billion. Of note, these numbers do not include the impact of tourism, business taxes, licensing fees and paraphernalia sales, which could drive the economic impact higher.”

In order to meet the low end of the estimates for the adult-use market, Canada would have to produce over 600,000 kg of cannabis a year. This is a significant increase over current levels and has sparked a rush to build new grow facilities.

Trudeau said that provinces would decide where and how marijuana would be sold including price controls and whether or not it can be sold where alcohol is sold. Provinces also have to power to raise the legal age over 18.

Other details in the program include:

Adults over 18 can possess up to 30 grams of cannabis and grow four plants per household.

People under 18 won't be allowed to legally use marijuana, but they won't be subject to criminal penalties for small amounts.

Separate legislation will be written for people driving while impaired.

Taxes and fees will also be determined at a later date.

As expected, Canadian cannabis companies praised the new legislation. Canopy Growth said in a statement, “This is a truly historic day. Canada has administered an ineffective system of prohibiting cannabis since 1923 and today took a major step forward by introducing evidence-based policy that will reduce access for younger Canadians, ensure federally regulated production and standards, and establish a legitimate market that will create jobs and generate economic benefits to communities all across Canada.”

Terry Booth, CEO of Aurora Cannabis, agreed that this is a momentous occasion for Canadian cannabis companies. "We're witnessing the beginning of the end of the prohibition of cannabis and the creation of a framework for safe, regulated adult use, and the establishment of a secure environment for the continued growth of a new cannabis economy that will generate significant investment, innovation, economic development and job creation," Booth said. "The federal government, in turn, has taken a rational, responsible and methodical approach to cannabis legalization, driven by clear and consistent policy objectives. Canada is legalizing cannabis in a way that will protect youth, consumers, public health and safety."

I am the Co-Founder, CEO, and Editor-In-Chief of www.GreenMarketReport, a financial news site for the cannabis industry. Prior to this, I spent over 15 years working in a…

I am the Co-Founder, CEO, and Editor-In-Chief of www.GreenMarketReport, a financial news site for the cannabis industry. Prior to this, I spent over 15 years working in a variety of jobs in the securities industry before getting my Masters Degree in Journalism at NYU. As a financial journalist, I have met top-notch CEO's, star athletes and even a few celebrities. I've appeared on The Today Show, CNBC, and Bloomberg TV talking about multiple business topics. For eight years I worked at The Street and briefly for a research firm. I believe one of the biggest business stories this decade is the legalization of marijuana. I cover this industry from a financial point of view. My work in this area has been recognized with an AZBEE award for the video “Where People Want To Buy Pot.”